State tax credit to bring thousands to city CDC

A new law designed to generate revenue for community development corporations could bring $120,000 this year to the Community Economic Development Center, officials said Tuesday.

SIMÓN RIOS

NEW BEDFORD — A new law designed to generate revenue for community development corporations could bring $120,000 this year to the Community Economic Development Center, officials said Tuesday.

The Community Investment Tax Credit provides a 50 percent tax credit for donations to Massachusetts CDCs. With donations between $1,000 and $2 million, the state will return half the donation, in addition to federal tax benefits.

The United Way of Massachusetts Bay and Merrimack Valley has pledged $60,000 to the New Bedford CDC for this year, meaning the group has to raise an additional $60,000 to get the most benefit from the tax credit.

With state and federal tax credits, officials said one dollar donated will result in three dollars for CDCs.

At an event at the CEDC Tuesday morning, Rep. Antonio Cabral, D-New Bedford, said that by supporting the CEDC, the new law will help bring a new heyday to Acushnet Avenue.

"I remember the avenue," Cabral said with a smile.

"It used to be a very vibrant place. I think slowly it's coming back. It's more diverse today, so I think that diversity will help stabilize and create new sustainability moving forward."

Revenue generated through the tax credit could double in 2015. The credit is funded with $3 million in 2014, and $6 million each year thereafter through 2019.